TICC Announces Results of Operations for the Quarter Ended September 30, 2016 and Announces Quarterly Distribution of $0.29 per Share

GREENWICH, CT--(Marketwired - Nov 3, 2016) - TICC Capital Corp. (NASDAQ: TICC) ("TICC," the "Company," "we," "us" or "our") announced today its financial results for the quarter ended September 30, 2016, and announced a distribution of $0.29 per share for the fourth quarter of 2016.

HIGHLIGHTS

As of September 30, 2016, net asset value per share stood at $7.08 compared with a net asset value per share as of June 30, 2016 of $6.54.

For the quarter ended September 30, 2016, we recorded net investment income of approximately $5.9 million, or approximately $0.11 per share. In the third quarter, we also recorded net unrealized appreciation of approximately $42.3 million and net realized capital losses of approximately $5.3 million. Our collateralized loan obligation ("CLO") positions represented approximately $25.8 million of the net unrealized appreciation for the quarter. In total we had a net increase in net assets from operations of approximately $42.9 million, or approximately $0.83 per share.

Our core net investment income ("Core NII"), which is a non-GAAP measure, for the quarter ended September 30, 2016 was approximately $15.3 million, or approximately $0.30 per share.

Core NII represents net investment income adjusted for additional cash distributions received, or entitled to be received (if any, in either case), on our CLO equity investments and also excludes any capital gains incentive fees we recognize but have no obligation to pay in any period. (See additional information under "Supplemental Information Regarding Core Net Investment Income" below).

Total investment income for the third quarter of 2016 amounted to approximately $18.1 million, which represented an increase of approximately $1.0 million from the second quarter of 2016.

For the quarter ended September 30, 2016, we recorded investment income from our portfolio as follows:

approximately $8.7 million from our debt investments,

approximately $8.6 million from our CLO equity investments, and

approximately $0.8 million from all other sources.

While our experience has been that cash flow distributions have historically represented useful indicators of our CLO equity investments' annual taxable income, we believe that current and future cash flow distributions may provide less useful indications as to the final determination of taxable income with respect to our CLO equity investments. In general, we currently expect our annual taxable income to be higher than our GAAP earnings for the current fiscal year.

Our weighted average credit rating on a fair value basis was 2.2 at the end of the third quarter of 2016 (compared to 2.2 at the end of the second quarter of 2016).

Our total expenses for the quarter ended September 30, 2016 were approximately $12.2 million, up by approximately $2.0 million compared to the second quarter of 2016.

Our Board of Directors has declared a distribution of $0.29 per share for the fourth quarter of 2016.

Payable Date: December 30, 2016

Record Date: December 16, 2016

During the third quarter of 2016:

We made cash investments of approximately $46.8 million, consisting of approximately $24.4 million in corporate securities, approximately $2.5 million in CLO debt and approximately $19.9 million in CLO equity, as we continued our rotation of those portfolios. We received, or were entitled to receive, cash proceeds of approximately $44.2 million from sales of our CLO investments.

We received, or were entitled to receive, cash proceeds of approximately $69.4 million from repayments, sales and amortization payments on our corporate loan investments. $36.0 million of those proceeds were applied towards a partial redemption of the TICC CLO 2012-1 LLC Class A-1 Notes.

As of September 30, 2016, the weighted average yield of our debt investments at current cost was approximately 8.0%, compared with approximately 7.5% as of June 30, 2016.

As of September 30, 2016, the weighted average effective yield (GAAP) of our CLO equity investments at current cost was approximately 14.0%, compared with approximately 12.8% as of June 30, 2016.

As of September 30, 2016, the weighted average cash yield of our CLO equity investments at current cost was approximately 27.6%, compared with approximately 25.8% as of June 30, 2016.

At September 30, 2016, we had no investments on non-accrual status.

Supplemental Information Regarding Core Net Investment Income

On a supplemental basis, we provide information relating to core net investment income, which is a non-GAAP measure. This measure is provided in addition to, but not as a substitute for, net investment income. Our non-GAAP measures may differ from similar measures by other companies, even if similar terms are used to identify such measures. Core net investment income represents net investment income adjusted for additional cash distributions received, or entitled to be received (if any, in either case), on our CLO equity investments and also excludes any capital gains incentive fees we recognize but have no obligation to pay in any period. The Company did not recognize any capital gains incentive fees for the quarter ended September 30, 2016.

Income from investments in the "equity" class securities of CLO vehicles, for GAAP purposes, is recorded using the effective interest method based upon an effective yield to the expected redemption utilizing estimated cash flows, compared to the cost resulting in an effective yield for the investment; the difference between the actual cash received or distributions entitled to be received and the effective yield calculation is an adjustment to cost. Accordingly, investment income recognized on CLO equity securities in the GAAP statement of operations differs from the cash distributions actually received by us during the period, (referred to below as "CLO equity additional distributions").

Further, in order to continue to qualify to be taxed as a regulated investment company ("RIC"), we are required, among other things, to distribute at least 90% of our investment company taxable income annually. Therefore, core net investment income may provide a better indication of estimated taxable income for a reporting period than does GAAP net investment income. Although we can offer no assurance that will be the case as the ultimate tax character of our earnings cannot be determined until tax returns are prepared after the end of a fiscal year. We note that these non-GAAP measures may not be useful indicators of taxable earnings, particularly during periods of market disruption and volatility.

The following table provides a reconciliation of net investment income to core net investment income for the three months ended September 30, 2016 and September 30, 2015:

Three Months Ended
September 30, 2016

Three Months Ended
September 30, 2015

Amount

Per Share
Amounts (basic)

Amount

Per Share
Amounts (basic)

Net investment income

$

5,891,178

$

0.114

$

10,874,618

$

0.181

CLO equity additional distributions

9,359,695

$

0.182

9,343,218

$

0.156

Core net investment income

$

15,250,873

$

0.296

$

20,217,836

$

0.337

We will host a conference call to discuss our third quarter results today, Thursday, November 3, 2016 at 10:00 AM ET. Please call 1-888-339-0740 to participate. A replay of the conference call will be available for approximately 30 days. The replay number is 1-877-344-7529, and the replay passcode is 10095857.

A presentation containing further detail regarding our quarterly results of operations has been posted under the Investor Relations section of our website at www.ticc.com.

The following financial statements are unaudited and without footnotes. Readers who would like additional information should obtain our Form 10-Q for the period ended September 30, 2016, and subsequent reports on Form 10-Q as they are filed.

Management monitors available taxable earnings, including net investment income and realized capital gains, to determine if a tax return of capital may occur for the year. To the extent the Company's taxable earnings fall below the total amount of the Company's distributions for that fiscal year, a portion of those distributions may be deemed a tax return of capital to the Company's stockholders. The ultimate tax character of our earnings cannot be determined until tax returns are prepared after the end of the fiscal year.

(4)

Total return equals the increase or decrease of ending market value over beginning market value, plus distributions, divided by the beginning market value, assuming distribution reinvestment prices obtained under the Company's distribution reinvestment plan, excluding any discounts. Total return is not annualized.

(5)

Annualized.

(6)

The following table provides supplemental performance ratios (annualized) measured for the three and nine months ended September 30, 2016 and 2015:

Three Months Ended

Three Months Ended

Nine Months Ended

Nine Months Ended

Ratio of expenses to average net assets:

September 30, 2016

September 30, 2015

September 30, 2016

September 30, 2015

Expenses before incentive fees

13.44

%

9.50

%

12.83

%

9.27

%

Net investment income incentive fees

0.48

%

0.47

%

0.67

%

(0.24)

%

Ratio of expenses, excluding interest expense,

8.16

%

5.88

%

7.95

%

5.12

%

to average net assets

About TICC Capital Corp.TICC Capital Corp. is a publicly-traded business development company principally engaged in providing capital to established businesses, investing in syndicated bank loans and purchasing debt and equity tranches of collateralized loan obligation vehicles.

Forward-Looking Statements This press release contains forward-looking statements subject to the inherent uncertainties in predicting future results and conditions. Any statements that are not statements of historical fact (including statements containing the words "believes," "plans," "anticipates," "expects," "estimates" and similar expressions) should also be considered to be forward-looking statements. Certain factors could cause actual results and conditions to differ materially from those projected in these forward-looking statements. These factors are identified from time to time in our filings with the Securities and Exchange Commission. We undertake no obligation to update such statements to reflect subsequent events, except as may be required by law.